<PAGE>
The Eaton Vance Special Investment Trust
For the Investors Portfolio
[LOGO]
Semi-Annual Shareholder Report
June 30, 1996
Investment Adviser of Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator
Eaton Vance Management
24 Federal Street
Boston, MA 02110
(617) 482-8260
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
89 South Street
P.O. Box 1537
Boston MA 02205-1537
Transfer Agent
First Data Investor Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
Coopers & Lybrand L.L.P.
One Post Office Square
Boston, MA 02109
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--------------------------------------------
INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996
(UNAUDITED)
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COMMON STOCKS - 64.1%
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NAME OF COMPANY SHARES VALUE
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BANKS - 3.5%
Banco Latinoamericano de Exportaciones 75,000 $ 4,218,750
Chase Manhattan Corp. 85,200 6,017,250
------------
$ 10,236,000
------------
BEVERAGES - 2.8%
Coca-Cola Co. 50,000 $ 2,443,750
PepsiCo Inc. 160,000 5,660,000
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$ 8,103,750
------------
CHEMICALS - 3.4%
Monsanto Corp. 200,000 $ 6,500,000
Praxair Inc. 80,000 3,380,000
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$ 9,880,000
------------
COMPUTER & BUSINESS EQUIPMENT - 3.1%
Hewlett Packard Co. 45,000 $ 4,483,125
Xerox Corp. 81,000 4,333,500
------------
$ 8,816,625
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DRUGS - 4.8%
Astra AB A Free Shares 190,000 $ 8,389,754
Pfizer Inc. 18,900 1,348,988
Smithkline Beecham PLC ADR 75,000 4,078,125
------------
$ 13,816,867
------------
ELECTRIC UTILITIES - 2.3%
New England Electric System 90,000 $ 3,273,750
The Southern Co. 140,000 3,447,500
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$ 6,721,250
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ELECTRICAL EQUIPMENT - 0.6%
AMP Inc. 45,000 $ 1,805,625
------------
ELECTRONICS - SEMICONDUCTORS - 2.7%
MEMC Electronic Materials, Inc. 89,000 $ 3,448,750
Intel Corp. 60,000 4,406,250
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$ 7,855,000
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ENTERTAINMENT - 0.6%
Walt Disney Co. 26,233 $ 1,649,400
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FINANCIAL - MISCELLANEOUS - 4.0%
Federal National Mortgage Association 160,000 $ 5,360,000
MBNA Corp. 100,000 2,850,000
MGIC Investment Corp. 60,000 3,367,500
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$ 11,577,500
------------
FOOD - 0.6%
Nestle SA* 1,620 $ 1,849,581
------------
FERTILIZER - 1.4%
Potash Corp. of Saskatchewan 60,000 $ 3,975,000
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HOUSEHOLD PRODUCTS - 0.8%
Kimberley Clark Corp. 31,200 $ 2,410,200
------------
INFORMATION SERVICES - 1.9%
Reuters Holdings, PLC ADR 75,000 $ 5,437,500
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INSURANCE - 4.9%
Allstate Corp. 90,000 $ 4,106,250
General Re Corp. 30,000 4,567,500
Mutual Risk Management Ltd. 57,200 1,787,500
Progressive Corp. 80,000 3,700,000
------------
$ 14,161,250
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MACHINERY - 1.9%
Deere & Co. 135,000 $ 5,400,000
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MEDICAL PRODUCTS - 2.8%
Boston Scientific Corp. 90,000 $ 4,050,000
Sofamor Danek Group, Inc.* 147,000 4,079,250
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$ 8,129,250
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METALS & MINING - 1.0%
J & L Specialty Steel, Inc. 200,000 $ 2,975,000
------------
OIL & GAS - EXPLORATION & PRODUCTION - 2.5%
Anadarko Petroleum Corp. 60,000 $ 3,480,000
Triton Energy Ltd. 79,800 3,880,275
------------
$ 7,360,275
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OIL & GAS - INTEGRATED - 2.1%
Exxon Corp. 43,640 $ 3,791,225
Mobil Corp. 20,000 2,242,500
------------
$ 6,033,725
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PAPER & FOREST PRODUCTS - 0.7%
Plum Creek Timber Co., L.P. 90,000 $ 2,148,750
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PHOTOGRAPHY - 1.8%
Eastman Kodak Co. 65,000 $ 5,053,750
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PUBLISHING - 1.3%
McGraw-Hill, Inc. 80,000 $ 3,660,000
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REAL ESTATE - 4.1%
Chateau Properties, Inc. 75,000 $ 1,668,750
Colonial Properties Trust 80,000 1,940,000
Equity Residential Properties Trust 101,400 3,333,525
ROC Communities, Inc. 116,250 2,775,468
Security Capital Industrial Trust 37,000 652,125
Shurgard Storage Centers, Inc. 61,000 1,540,250
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$ 11,910,118
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RETAIL - FOOD & DRUG - 1.3%
Melville Corp. 95,000 $ 3,847,500
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RETAIL - SPECIALTY - 2.8%
Circuit City Stores, Inc. 100,000 $ 3,612,500
Home Depot, Inc. 80,000 4,320,000
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$ 7,932,500
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SPECIALTY CHEMICALS & MATERIALS - 0.5%
Loctite Corp. 28,300 $ 1,315,950
------------
TELEPHONE UTILITIES - 2.6%
Ameritech Corp. 80,448 $ 4,776,600
Frontier Corp. 85,000 2,603,125
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$ 7,379,725
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TRANSPORTATION - 1.3%
Canadian National Railway 1,200 $ 22,050
Southwest Airlines Co. 125,000 3,640,625
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$ 3,662,675
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TOTAL COMMON STOCKS
(IDENTIFIED COST, $123,734,707) $185,104,766
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CONVERTIBLE PREFERRED STOCK - 1.2%
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NAME OF COMPANY SHARES VALUE
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Freeport McMoRan Copper & Gold 125,000 $ 3,406,250
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TOTAL CONVERTIBLE PREFERRED STOCK
(IDENTIFIED COST, $2,872,500) $ 3,406,250
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PREFERRED STOCK - 1.0%
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NAME OF COMPANY SHARES VALUE
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Bank of Boston Ser. C Adj. Rt. 37,600 $ 2,914,000
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TOTAL PREFERRED STOCK
(IDENTIFIED COST, $1,815,525) $ 2,914,000
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U.S. TREASURY/AGENCY OBLIGATIONS - 18.4%
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FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
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Federal Home Loan Mortgage Corp.,
8.10s, 12/15/04 $ 441 $ 443,938
Federal Home Loan Mortgage Corp.,
9.70%, 1/15/16 2,296 2,337,036
Federal Home Loan Mortgage Corp.,
9s, 11/15/19 573 594,514
Federal Home Loan Mortgage Corp.,
7.95%, 12/1/90 2,417 2,457,070
Federal Home Loan Mortgage Corp.,
10s, 5/15/20 2,375 2,530,848
Federal National Mortgage Association,
7.50s, 5/25/19 1,744 1,760,061
Federal National Mortgage Association,
8.50s, 7/25/19 1,917 1,933,898
Federal National Mortgage Association,
9s, 3/25/20 2,000 2,090,620
U.S. Treasury Bond, 7.875s, 2/15/21 2,000 2,194,060
U.S. Treasury Notes, 6.125s, 7/31/96 3,250 3,252,535
U.S. Treasury Notes, 7.375s, 11/15/97 1,800 1,832,057
U.S. Treasury Notes, 8.125s, 2/15/98 3,000 3,093,750
U.S. Treasury Notes, 7.125s, 9/30/99 17,000 17,371,790
U.S. Treasury Notes, 5.625s, 11/30/00 7,500 7,264,425
U.S. Treasury Notes, 6.875s, 5/15/06 4,000 4,044,360
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TOTAL U.S. TREASURY/AGENCY OBLIGATIONS
(IDENTIFIED COST, $53,525,887) $ 53,200,962
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CORPORATE BONDS - 12.6%
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FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
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American General Finance Corp.,
8.125s, 8/15/09 $ 2,460 $ 2,592,446
Bell Telephone Co. PA, 8.35s, 12/15/30 3,000 3,421,260
Chesapeake Potomac Telephone VA,
8 3/8s, 10/1/29 1,500 1,678,980
Columbia/HCA Health, 8.36%, 5/15/24 900 957,960
Connecitcut Light & Power MBIA,
7.875%, 10/1/24 3,775 4,090,666
Dayton Hudson Medium Term Note,
9.50s, 6/10/15 650 733,057
Eaton Corp., 8s, 8/15/06 1,000 1,054,860
General Motors Corp. 8.80s, 3/1/21 3,130 3,507,760
General Motors Corp. Medium Term Notes,
9.45s, 11/1/11 3,000 3,447,600
Hertz Corp., 9%, 11/1/09 2,600 2,908,178
Inter American Development Bank,
8.875s, 6/1/09 2,000 2,292,960
Inter American Development Bank,
8.40s, 9/1/09 1,500 1,678,440
Johnson Controls, 7.70%, 3/1/15 1,360 1,423,743
Pitney Bowes Credit Corp., 9.25s, 6/15/08 1,650 1,908,126
Procter & Gamble Co., 8s, 10/26/29 2,345 2,493,954
Seagram (Joseph) & Sons, 9.65s, 8/15/18 1,030 1,245,754
TRW Inc., Medium Term Notes,
9.35%, 6/4/20 800 953,192
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TOTAL CORPORATE BONDS
(IDENTIFIED COST, $35,945,376) $ 36,388,936
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SHORT-TERM OBLIGATIONS - 2.3%
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FACE AMOUNT
NAME OF COMPANY (000 OMITTED) VALUE
- -----------------------------------------------------------------------------
Associates Corp. of North America,
5.51s, 7/1/96 $6,603 $ 6,603,000
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TOTAL SHORT-TERM OBLIGATIONS, AT
AMORTIZED COST $ 6,603,000
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TOTAL INVESTMENTS - 99.6%
(IDENTIFIED COST, $224,496,995) $287,617,914
OTHER ASSETS, LESS LIABILITIES - 0.4% 1,090,769
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NET ASSETS - 100% $288,708,683
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*Non-income producing security.
The accompanying notes are an integral part
of the financial statements
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FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
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June 30, 1996 (Unaudited)
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ASSETS:
Investments, at value (Note 1A) (identified cost,
$224,496,995) $287,617,914
Cash 50,671
Foreign currency, at value (cost, $71,354) 72,575
Receivable for investments sold 1,739,732
Interest receivable 1,365,504
Dividends receivable 438,402
Deferred organization expenses (Note 1E) 7,384
Tax reclaim receivable 26,973
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Total assets $291,319,155
LIABILITIES:
Payable for investments purchased $2,576,510
Payable to affiliate --
Trustees' fees 3,840
Accrued expenses and other liabilities 30,122
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Total liabilities 2,610,472
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NET ASSETS applicable to investors' interest
in Portfolio $288,708,683
============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $225,586,251
Unrealized appreciation of investments (computed
on the basis of identified cost) 63,122,432
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Total net assets $288,708,683
============
The accompanying notes are an integral part of the financial statements
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STATEMENT OF OPERATIONS
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For the Six Months Ended June 30, 1996 (Unaudited)
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INVESTMENT INCOME (NOTE 1B):
Interest income $ 3,648,748
Dividend income (net of withholding tax of
$36,405) 2,302,332
-----------
Total income $ 5,951,080
Expenses --
Investment adviser fee (Note 3) $ 884,060
Compensation of Trustees not members of the
Investment Adviser's organization (Note 3) 6,225
Custodian fee (Note 1D) 75,919
Legal and accounting fees 19,817
Amortization of organization expenses (Note 1E) 1,593
Miscellaneous 3,992
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Total expenses 991,606
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Net investment income $ 4,959,474
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investment transactions
(identified cost basis) $14,445,274
Change in unrealized appreciation on investments (4,042,244)
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Net realized and unrealized gain on
investments 10,403,030
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Net increase in net assets resulting from
operations $15,362,504
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The accompanying notes are an integral part of the financial statements
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
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SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31,
(UNAUDITED) 1995**
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INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 4,959,474 $ 8,692,310
Net realized gain on investment transactions 14,445,274 9,116,976
Change in unrealized appreciation of
investments (4,042,244) 43,494,132
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Net increase in net assets from
operations $ 15,362,504 $ 61,303,418
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Capital transactions --
Contributions $ 21,681,244 $ 32,319,917
Withdrawals (24,709,865) (34,406,030)
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Decrease in net assets resulting from
capital transactions $ (3,028,621) $ (2,086,113)
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Total increase in net assets $ 12,333,883 $ 59,217,305
NET ASSETS:
At beginning of period 276,374,800 217,157,495
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At end of period $288,708,683 $276,374,800
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<TABLE>
<CAPTION>
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SUPPLEMENTARY DATA
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SIX MONTHS
ENDED YEAR ENDED YEAR ENDED JANUARY 31,
JUNE 30, 1996 DECEMBER 31, ----------------------
(UNAUDITED) 1995** 1995 1994*
------------- ------------ ------ ------
<S> <C> <C> <C> <C>
RATIOS (to average daily net assets):
Expenses 0.70%+ 0.71%+ 0.70% 0.69%+
Net investment income 3.52%+ 3.83%+ 4.25% 3.69%+
PORTFOLIO TURNOVER 43% 47% 28% 15%
AVERAGE COMMISSION RATE PAID (1) $0.0598 -- -- --
<FN>
+ Computed on an annualized basis.
* For the period from the start of business, October 28, 1993, to January 31, 1994.
** For the eleven month period ended December 31, 1995. (Note 6)
(1) Average commission rate paid is computed by dividing the total dollar amount of commissions paid during the
fiscal year by the total number of shares purchased and sold during the fiscal year for which commissions
were charged. For fiscal years beginning on or after September 1, 1995, a Fund is required to disclose its
average commission rate per share for security trades on which commissions are charged.
</TABLE>
The accompanying notes are an integral part of the financial statements
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(UNAUDITED)
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(1) SIGNIFICANT ACCOUNTING POLICIES
Investors Portfolio (the "Portfolio") is registered under the Investment
Company Act of 1940, as a diversified, open-end, management investment
company, which was organized as a trust under the laws of the State of New
York in 1992. The Declaration of Trust permits the Trustees to issue interests
in the Portfolio. The following is a summary of significant accounting
policies of the Portfolio. The policies are in conformity with generally
accepted accounting principles.
A. INVESTMENT VALUATIONS -- Securities listed on securities exchanges or in
the NASDAQ National Market are valued at closing sales prices. Listed or
unlisted investments for which closing sale prices are not available are
valued at the mean between latest bid and asked prices. Debt investments
(other than mortgage-backed "pass-through" securities) are valued at prices
furnished by a pricing service. Mortgage-backed "pass through" securities are
valued using a matrix pricing system which takes into account closing bond
valuations, yield differentials, anticipated prepayments and interest rates.
Short-term obligations maturing in 60 days or less, are valued at amortized
cost, which approximates value. All other investments are valued at fair value
using methods determined in good faith by or at the direction of the Trustees.
B. INCOME -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount on debt investments when
required for federal income tax purposes. Dividend income is recorded on the
ex-dividend date. Dividend income may include dividends that represent returns
of capital for federal income
tax purposes.
C. FEDERAL TAXES -- The Portfolio is treated as a partnership for Federal
tax purposes. No provision is made by the Portfolio for federal or state taxes
on any taxable income of the Portfolio because each investor in the Portfolio
is ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio must satisfy
the applicable source of income and diversification requirements (under the
Code) in order for its investors to satisfy them. The Portfolio will allocate
at least annually among its investors each investors' distributive share of
the Portfolio's net taxable income, net realized capital gains, and any other
items of income, gain, loss, deduction or credit.
D. EXPENSE REDUCTION -- The Fund has entered into an arrangement with its
custodian agent whereby interest earned on uninvested cash balances are used
to offset custody fees. All significant reductions are reported as a reduction
of expenses in the Statement of Operations.
E. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line basis
over five years.
F. SECURITY TRANSACTIONS -- Investment transactions are accounted for on the
date the investments are purchased or sold. Realized gains and losses on the
sale of investments are determined on the identified cost basis.
G. INTERIM FINANCIAL INFORMATION -- The interim financial statements relating
to June 30, 1996 and for the six month period then ended have not been audited
by independent certified public accountants, but in the opinion of the Fund's
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
H. USE OF ESTIMATES -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
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(2) INVESTMENT TRANSACTIONS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $70,885,820 and $84,214,648, respectively.
Purchases and sales of U.S. Government securities aggregated $53,742,620 and
$30,593,906, respectively.
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(3) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to the Portfolio. The fee
is computed at the monthly rate of 5/96 of 1% (0.625% annually) of the
Portfolio's average daily net assets up to $300 million and at reduced rates
as daily net assets exceed that level. For the six months ended June 30, 1996,
the fee was equivalent to 0.625% (annualized) of the Portfolio's average net
assets for such period and amounted to $884,060. Except as to Trustees of the
Portfolio who are not members of EVM's or BMR's organization, officers and
Trustees receive remuneration for their service to the Portfolio out of such
investment adviser fee. Certain of the officers and Trustees of the Portfolio
are officers and directors/trustees of the above organizations.
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(4) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $120 million unsecured line of credit agreement
with a bank. The line of credit consists of a $20 million committed facility
and a $100 million discretionary facility. Borrowings will be made by the
Portfolio solely to facilitate the handling of unusual and/or unanticipated
short-term cash requirements. Interest is charged to each portfolio or fund
based on its borrowings at an amount above either the bank's adjusted
certificate of deposit rate, a variable adjusted certificate of deposit rate,
or a federal funds effective rate. In addition, a fee computed at an annual
rate of 1/4 of 1% on the $20 million committed facility and on the daily
unused portion of the $100 million discretionary facility is allocated among
the participating funds and portfolios at the end of each quarter. The
Portfolio did not have any significant borrowings or allocated fees during the
period.
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(5) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/(depreciation) in the value of investments
owned at June 30, 1996, as computed on a federal income tax basis, are as
follows:
Aggregate cost $224,496,995
============
Gross unrealized appreciation $ 65,483,242
Gross unrealized depreciation 2,362,323
------------
Net unrealized appreciation $ 63,120,919
============
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(6) CHANGE IN FISCAL YEAR END
The Portfolio changed its fiscal year end from January 31, to December 31,
effective December 31, 1995.
<PAGE>
INVESTMENT MANAGEMENT FOR INVESTORS PORTFOLIO
OFFICERS DIRECTORS
JAMES B. HAWKES LANDON T. CLAY
President, Director Chairman, Eaton Vance Corp.
MARK S. VENEZIA DONALD R. DWIGHT
Vice President President, Dwight Partners, Inc.
Chairman, Newspapers of
JAMES L. O'CONNOR New England, Inc.
Tresurer
SAMUEL L. HAYES, III
THOMAS OTIS Jacob H. Schiff Professor of
Secretary Investment Banking,
Harvard University Graduate School
of Business Administration
NORTON H. REAMER
President and Director, United Asset
Management Corporation
JOHN L. THORNDIKE
Director,
Fiduciary Company Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
